Nike Shoes, Muji Foods Skewed In China Consumer Day Show

03/16/2017

U.S. sports brand Nike was accused of misleading advertising and Japanese brand Muji for selling food products allegedly sourced from part of Japan affected by radiation at China's annual consumer rights day television show.

Nike had misled consumers over high-tech air cushions in some of its "Hyperdunk" basketball shoes said, the state-run China Central Television (CCTV) show - which can have brands and their corporate PR teams scurrying to take evasive action.

Having previously named and shamed firms from Apple Inc to Volkswagen AG, the CCTV show - known as "315" in reference to global consumer rights day on March 15 is similar to CBS network's "60 Minutes" in the United States.

Japanese brands including Muji, owned by Ryohin Keikaku Co was accused of selling food products in China from an area of Tokyo where high levels of radiation were detected in 2015 in the two-hour show - a mix of undercover reports and song-and-dance.

The firm was "not selling any food products in China from areas banned from exporting due to concerns about radioactive contamination", a Ryohin Keikaku spokesman said on Thursday.

Since the company's registered address and the food production site were different, it resulted in a misunderstanding, Muji's China website said.

Alleging that Japan had not given clear answers about the effect and extent of radiation leaks from the Fukushima nuclear crisis of 2011, calls for greater transparency was given by Chinese Foreign Ministry spokeswoman Hua Chunying.

Products with "an inaccurate product description stating that the shoe contained airbags", it had sold 300 pairs of Hyperdunk shoes in China last year, Nike said in a statement. It had apologized to consumers and offered compensation the firm added.

"We will fully cooperate with the government regulators regarding their inquiries," the company said. Over 10 percent of Nike's global sales is accounted for by the Greater China region.

China's Wikipedia-like Baike.com, animal breeders for over-using medicines to make animals grow faster and fake eye doctors for scamming patients, were also targeted in the show.

The 315 show can hit a firm's reputation if singled out for bad corporate behavior. Apple was forced into a rare apology in 2013 after criticism on the show of its China after-sales service.

"Pretty much all the big corporations have their PR machines ready to jump into action because they've seen what happens when companies are not prepared," said James Feldkamp, Shanghai-based CEO of independent China consumer watchdog Mingjian.

While not taking aim at any major international firms, local food delivery apps, fake online sales and dodgy false teeth were targeted on Wednesday's version show of th program even as it was seen as harder hitting than last year's because there were talks that the annual program has lost some of its bite in recent years

However, while online chatter was more muted than in previous years, many in China steered clear of the show altogether. They were underwhelmed by the show's corporate exposés and any impact would likely be short-lived, viewers who tuned in said.